The growing sport and leisure trend, as well as the environmental issues gaining more attention, lead to growing global bicycle sales. Taiwan bicycle industry is worth of in-depth research, because it is one of the few industries which own the capabilities in research and innovation, International division of laboring, brand name marketing, and country wide distribution channels. The objective of this study is to enhance the understanding of Taiwan bicycle industry. It begins with current developments on both worldwide and Taiwan bicycle industries, followed by the financial health check on top two leading local companies from the financial point of view. Finally the investment value under reasonable profit is assessed by combining evaluation model. The financial reports along with related information of Giant BicycleTM and Merida BikesTM from 2007 to 2012 （6 years） were chosen for analysis. The results show that both companies have robust financial structures, ability to repay short-term debt and interest, good capacities in management and profitability, and meeting the Master Investor's stock selection criteria, yet both companies have shortfalls in cash flow. Merida BikesTM was superior to Giant BicycleTM in the indexes such as financial structure, debt-paying ability, internal capital requirement, and overall profitability, which makes Merida BikesTM possess better company characteristics. As for the investment cost, both stock prices are too high to buy in. The economy signal also encourage investors to maintain current stock holding, then adjust the number of shares when the signal of overweight or less code is more intense.